The price of oil, currently at $29 a barrel, is widely expected to fall if Washington launches a successful war on Iraq. Mr Yastrzhembsky said Russia could cope with a fall in price to $18 a barrel but not any lower.

Moscow said it will also be looking for guarantees that Russian companies would be able to keep valuable oilfields in western Iraq if Saddam is deposed.

In a telephone conversation last weekend, Colin Powell, US secretary of state, told Dominique de Villepin, French foreign minister, Washington would consider dropping its demand for automatic UN authorisation for the use of military force if Iraq did not comply with the newest demands.

However, it wanted to maintain strong language that made clear Iraq faced consequences if it did not comply with the UN.